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- Constellation to sell Texas gas plant to LS Power for $860 million
- Company raises 2026 profit forecast
- Company beats Q2 profit estimates
Aug 6 (Reuters) – Power company Constellation Energy (CEG.O) said on Thursday it will sell a gas plant in Texas to LS Power for $860 million, and raised its current-year operating earnings forecast on the back of robust power demand, sending shares up 1.3% in morning trading.
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The sale of Brazos Valley Energy Center plant to LS Power marks the last divestiture required by Constellation to complete its $16.4-billion acquisition of Calpine assets.
Constellation, the largest nuclear power operator in the U.S., has been expanding beyond its nuclear-heavy fleet, with its Calpine acquisition adding a large gas-fired generation portfolio that gives it more flexibility in high-demand markets such as Texas.
Executives said on a conference call that much of the anticipated data center load in Texas remains under construction and has not yet been connected to the grid.
In a separate statement, LS Power said its deal for the Texas plant, expected to close by the end of this year, will bring its total capacity to 14,100 MW post completion and strengthen its presence in ERCOT, one of the fastest-growing power markets.
LIFTS FORECAST ON ROBUST POWER DEMAND
Constellation said most of its generation output is now contracted through 2050 and beyond, providing long-term revenue visibility.
The company said on Thursday it has signed agreements to provide an additional 920 megawatts (MW) of nuclear power to a diverse set of investment-grade customers for 15 to 20 years, with supply set to begin from 2029 through 2032.
It has also filed applications with the Nuclear Regulatory Commission to extend the operating licenses of its Ginna Clean Energy Center and Nine Mile Point Unit 1 reactor in New York to 2049, a 20-year extension if approved.
The company posted operating earnings of $2.55 per share, beating the analysts’ average estimates of $2.28 per share, according to data compiled by LSEG.
It raised its annual forecast for operating earnings to between $11.50 and $12.50 per share, from $11.00 to $12.00 per share earlier.
Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo
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